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Hillcrest Petroleum Ltd

Hillcrest Petroleum set to pursue Western Canada opportunities under new tie-up

Under the new partnership, Hillcrest will introduce the partner to pre-screened acquisition opportunities

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Hillcrest is an oil and gas junior
Hillcrest Petroleum Ltd (CVE:HRH) has inked a deal with a private company in a bid to form a strategic alliance to pursue oil and gas acquisitions in Western Canada. 
 
Under the new partnership, Hillcrest will introduce the partner to pre-screened acquisition opportunities and the partner would fund the acquisition and development.
 
Hillcrest has already compiled a register of potential acquisition targets in Western Canada, based on criteria including positive operating cash flow from current production operations, and the potential to increase the market value of the assets by more than 3 times’.
 
"Hillcrest is excited to have created a working relationship with our potential new partner,“ said Don Currie, Hillcrest chief executive.
 
“The relationship between the parties will see their capital back our Western Canadian acquisition opportunities, with both parties benefiting as acquisitions are completed and further field development is commenced. 
 
“The immediate value to Hillcrest is that we expect to be able to acquire significant interests in quality oil and gas assets we have identified and commenced discussions on over the last several months without significant equity capital raises, thus minimising shareholder dilution or avoiding it altogether. 
 
“Our management team has an extensive track record of delivering value from upstream oil and gas projects and we believe this is an excellent time to be acquiring assets in the Western Canadian Sedimentary Basin."
 
Among the parts of the deal, for any assets which the partner elects to fund, Hillcrest will manage and operate those assets under the terms of joint venture agreements between Hillcrest and the Partner.
 
Hillcrest will also receive a 25% carried interest in any assets acquired.
 
Hillcrest will receive a management fee and be entitled to recover its out-of-pocket costs for managing the assets.
 
In Toronto, Hillcrest shares stood at C$0.06 each.

Quick facts: Hillcrest Petroleum Ltd

Price: $0.03

Market: TSX-V
Market Cap: $2.28 m
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